A 2016 survey of 1,193 travel agents in the United States found that on average 78% of their revenue was from commissions and 22% was generated from fees.
The customer is normally not made aware of how much the travel agent is earning in commissions and other benefits. Hotel owners and tour operators typically pay a higher commission rate to travel agencies, whereas airlines typically pay a low commission. Travel agencies often receive commissions and other benefits and incentives from providers or may charge a fee to the end users.
They do not keep inventory in-hand unless they have pre-booked hotel rooms or cabins on a cruise ship for a group travel event such as a wedding, honeymoon, or other group event. A travel agency's main function is to act as an agent, selling travel products and services on behalf of a supplier. Travel agencies can also serve as general sales agents for airlines that do not have offices in a specific region. Travel agencies can provide outdoor recreation activities, airlines, car rentals, cruise lines, hotels, railways, travel insurance, package tours, insurance, guide books, VIP airport lounge access, arranging logistics for luggage and medical items delivery for travellers upon request, public transport timetables, car rentals, and bureau de change services. A travel agency is a private retailer or public service that provides travel and tourism-related services to the general public on behalf of accommodation or travel suppliers to offer different kinds of travelling packages for each destination.
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